1
Meeting Materials for First-Half of FY2016 Summary, Business Outlook and Financial Information
November 11, 2016
KYB Corporation (Stock Code: 7242; First Section of Tokyo Stock Exchange)
2
Contents
Summary and Business Outlook
Yasusuke Nakajima Representative Director, President Executive Officer
Financial Information
Takaaki Kato Member of the Board of Directors, Senior Managing Executive Officer
3
1H Evaluation
Shift to a business organization that can maximize profits
・ Structural reform for Hydraulic Components (HC) Operation Shift to a set up that can generate earnings
・ Quality problems are still unsolved From preventing shipping of defects to preventing occurrence
Uncertainty remains in the global economy, but the China construction market appears to have bottomed out
Opening
2H Environment
4
Yasusuke Nakajima Representative Director, President Executive Officer KYB Corporation
First-Half of FY2016
Summary and Business Outlook
5
1H of FY2016 Financial Summary
(¥ Billion)
IFRS Differences
FY2015 1H of FY2016
1H actual Forecast
(Aug. 5, 2016) Actual
Previous period
Previous forecast
Net Sales 179.9 174.0 172.9 (6.9) (1.1)
Segment profits* 8.1 7.0 7.9 (0.2) 0.9
Operating profit (0.2) 6.3 6.9 7.1 0.6
Profit (loss) attributable to owners of the parent
(3.1) 4.4 5.6 8.7 1.2
Dividend (¥) 5 5 5 ±0 ±0
*Segment profits correspond to operating income in JGAAP
(¥) 1H of FY2015 1H of FY2016
JPY / US$ 121.80 105.29 JPY / EUR 135.06 118.15 JPY / CNY 19.43 15.94 JPY / THB 3.56 3.00 JPY / RUB 2.12 1.61
■ FOREX (Average)
6
AC AC
1H of FY2016 Financial Performance by Segment (Net Sales)
■ Net Sales (¥ Billion)
6
HC
179.9 172.9
AC
IFRS Differences
(Previous period) FY2015 FY2016
1H actual 1H actual
AC Operations 122.6 115.2 (7.4) (6.0)%
HC Operations 45.1 45.2 0.1 0.2%
SV&S 12.2 12.6 0.4 3.2%
Total 179.9 172.9 (6.9) (3.8)%
AC Operations: Sales declined due to exchange rate (appreciation of the yen)
AC
HC
■ Cause of Fluctuation in Net Sales
AC: Automotive Components HC: Hydraulic Components SV&S: Special-purpose vehicles, aircraft components, and system product and electronic
components
FY2015 1H actual
FY2016 1H actual
7
1H of FY2016 Financial Performance by Segment (Segment Profits)
4.5% 4.5%
1
21
41
61
81
101
121IFRS
Differences (Previous period)
FY2015 FY2016
1H actual 1H actual
AC Operations 7.2 6.2 (1.0) (14.1)%
HC Operations 0.4 1.6 1.1 268.7%
SV&S 0.4 0.1 (0.3) (83.7)%
Total 8.1 7.9 (0.2) (2.9)%
8.1 7.9
AC AC
HC HC
FY2015 1H actual
FY2016 1H actual
■ Causes of Fluctuation in Segment Profits
AC Operations: Profits declined due to exchange rate (appreciation of the yen)
HC Operations: Profits increased due to business structural reform
■ Segment Profits (Margin) (¥ Billion)
AC: Automotive Components HC: Hydraulic Components SV&S: Special-purpose vehicles, aircraft components, and system product and electronic
components
8
1H FY2016 Financial Summary (Other)
Decrease in tax expenses (Reversal of deferred tax liabilities, etc.)
Loss associated with the antitrust lows in 1H
Increase in equity in earnings of affiliates
¥7.8 billion
■ Causes of Fluctuation in Operating Profit
¥1.4 billion
■ Cause of Fluctuation in Profit Attributable to Owners of the Parent
Foreign exchange loss on business transactions
¥(1.4) billion
¥1.0 billion
9
Financial Forecast for FY2016
(¥ Billion)
IFRS Differences
FY2015 FY2016
Actual Forecast
(Aug. 5, 2016) Forecast
Previous period
Previous forecast
Net Sales 355.3 346.0 348.0 (7.3) 2.0
Segment profits* 17.6 13.8 15.8 (1.8) 2.0
Operating profit 4.3 13.8 15.4 11.1 1.6
Profit (loss) attributable to owners of the parent
(3.2) 9.2 11.0 14.2 1.8
Dividend (¥) 11 11 11 ±0 ±0
(¥) FY2015 actual
2H of FY2016 estimate
JPY / US$ 120.15 100.00 JPY / EUR 132.57 110.00 JPY / CNY 18.85 15.00 JPY / THB 3.44 2.80 JPY / RUB 1.91 1.50
■ FOREX (Average)
HC Operations: Bottoming out of construction machinery market in China
■ Cause for Results Revision
*Segment profits correspond to operating income in JGAAP
FY2016 Financial Forecast by Segment
■ Net Sales (¥ Billion)
HC
355.3 348.0
AC
HC
AC
IFRS Differences
(Previous period) FY2015 FY2016
Actual Forecast
AC Operations 240.9 227.6 (13.3) (5.5)%
HC Operations 88.0 92.3 4.3 4.9%
SV&S 26.4 28.1 1.7 6.3%
Total 355.3 348.0 (7.3) (2.1)%
AC Operations 15.5 10.8 (4.7) (30.6)%
HC Operations 0.5 3.9 3.5 771.4%
SV&S 1.6 1.1 (0.5) (32.0)%
Total 17.6 15.8 (1.8) (10.2)%
4.4% 3.7%
0
50
100
150
200
250
300
176 158
FY2015 actual
FY2016 forecast
FY2015 actual
FY2016 forecast
■ Segment Profits (Margin) (¥ Billion)
AC: Automotive Components HC: Hydraulic Components SV&S: Special-purpose vehicles, aircraft components, and system product and electronic
components 10
11
Business Outlook
Shock Absorber (Aftermarket)
Special-purpose vehicles
CVT
Shock Absorber (OE)
Railroad
Aircraft
Construction Machinery
Motorcycles
EPS
Vibration control
12
(※)
Earnings increase due to bottoming out of China construction market and structural reform
See page 39 for a breakdown of each Business Division’s business segments
Position of Each Business Division
High profitability
Low profitability
Business environment = Market share × Market growth
Business environment downturn
Reorganize / restructure
*OE: Shock absorber products for automobile manufacturers
Business environment upswing
9 9 9
21 22 22
24 26 26
18 18 18
12 13 13
3 3 3 2 2 2 89
92 93
0
20
40
60
80
100
2015Actual
2016Forecast
2017Forecast
Middle East,Africa
South America
ASEAN, India,Korea
North America
China
Europe
Japan
13
Global: Year on year increase in major European
countries and China, slight decline in North America, resulting in a slight overall global increase
Domestic: Shift toward low price and green cars
progressing, but number of vehicles produced remains flat
AC Operations
■Automobile Production Forecast ■ Business Environment
■ FY2016 Key Efforts
Source: IHS (the end of Oct. 2016)
(Million units, Total of automobiles and small trucks)
• Develop value-added products
• Innovative monozukuri
• Boost profits with sales promotions for aftermarket products
14
2014 Started expansion
aimed at customers in Europe (800,000
units/year)
Global expansion for value-added products
Further increase sales and profits
2017 Expansion planned
for customers in Europe (220,000
units/year)
2015 Started expansion aimed at Toyota Prius (600,000
units/year)
2017 Expansion planned
for customers in North America
(500,000 units/year)
2016 Expansion planned for
customers in Japan (170,000 units/year)
Lower weight suspension
Electronically controlled suspension
AC Operations—
Develop Value-Added Products
Completion of production line for light cars
Equipment manufacture – End of Dec. 2016
Competitive line that lowers personnel costs
15
Installation / testing – Mar. 2017
Safety declaration – Apr. 2017
Equipment manufacture
Mass production testing – Nov. 2016
Mass production start – May 2017
Safety declaration – Feb. 2017
Mass production start – Mar. 2017
New concept line with high competitive power will start in Mexico and be globally rolled out in sequence.
Gifu North Plant (Japan)
KMEX (Mexico)
KMEX: KYB Mexico S.A. de C.V.
■ Development of New Line with Innovative Monozukuri
Current Japan New Line Mexico New Line
Large lot production Small lot production ○ (Production lot 1/3)
Manual operation Automation ―
Lines differ at each plant Global production lines ○
Results of new Mexico line: Changeover time 1/2, lead time 1/3
AC Operations—
Innovative Monozukuri
16
■ Automotive Shock Absorber Business Breakdown (Units sold)
OEM 67%
FY2020 84 million units
OEM 73%
FY2015 72 million units
19 million units
28 million units
Global Become a comprehensive suspension systems supplier by expanding complete line-up of high value-added products / fully equipped products
North America Start and expand transactions with the four largest aftermarket corporate groups
South America Expand sales network, increase business in the Mercosur market
Europe Warehouse rationalization, strengthen price competitiveness
Africa Establish sales promotion system in place by increasing sales in West and East Africa
ASEAN Enter and increase the share for large diameter shock absorbers for trucks
China Expand / sell applications for European automobiles
(※)OEM: Definite order only
(※)
AC Operations—
Boost Profits with Sales Promotions for Aftermarket Products
■ Aftermarket Strategy
Aftermarket 27%
Aftermarket 33%
17
India Increase production to respond to
growing demand and sales promotion to new customers
Become core component supply base
Thailand
Specialize in assembly
Indonesia Reinforce production of mid to large sized models
Taiwan
Become export base for Europe
〇 Reinforce 〇 Maintain 〇 Reorganize
Japan
Develop value added products / start mass production
China Work to sort and streamline unprofitable models
Measures Progress
・Integrate companies / plants in Vietnam and India
・Sales promotions for targets other than existing customers
Sequential reorganization starting in FY2017 Planned reduction by half of redundant capacity by 2019
■ 2020 Goal for KYB
Vietnam Strengthen and integrate production
of small sized models Sales promotion to new customers
AC Operations—
Motorcycle
Issue Decrease of units sold in China, ASEAN districts: Excess supply capacity
18
Progress with automated driving: Dealing with increasingly sophisticated technological development EPS market price decline due to popularization: Worsening profitability
Measure Progress
Complete an electronics technology development system Make use of outside resources
Electrical components for automated operation that allow for some redundancy under development
Design cost reduced EPS model Under development with market entry targeted for 2019
Sales promotions for EPS for ATV/UTV,* construction machinery, and agricultural machinery
Receive orders from new customers for special-purpose vehicle EPS
Issue
■ Efforts for Race EPSs
Europe
24 Hours of Le Mans
24 Hours of Nurburgring
World Rally Cross
Japan / Asia
SUPER GT
SUPER GT FOMULA
D1
Thailand Supercar Series
North America
24 Hours of Daytona
Global Rally Cross
Overall race appearance share: 45% LMP (Top category) Class: 72%
AC Operations—
EPS
*ATV: All-terrain Vehicle UTV: Utility Task Vehicle
LMP1: #12 REBELLION RACING
Recent model standard size column EPS
1.4 2.3 2.3 2.3 2.6 1.3 2.5 2.5 2.5 2.7 2.3 2.9 2.9 2.9 3.0
18.3
4.5 4.6 5.0 5.1
6.9
5.5 5.6 5.9 7.2
30.2
17.7 17.9 18.6 20.6
0
10
20
30
2010 2015 2016Beginning
of theperiod
2016Updatedforecast
2017Updatedforecast
Other emergingeconomiesChina
Europe
North America
Japan
19
6 tons and over: Growing sense that the China market is slowly bottoming out due to recovery
Less than 6 tons:
Sales of mini excavators, an urban construction machine, are a growing market as conditions in developed countries are favorable
HC Operations
■Demand for Hydraulic Excavators Forecast
6 tons and over (Ten thousand units)
(FY)
Source: KYB’s forecast, based on customer data
Low demand due to effect of Lehman Shock
(FY)
1.2 3.3 3.5 3.3 3.4 1.1
3.0 3.1 3.1 3.1 2.9
3.9 4.1 4.2 4.2
1.1
0.8 0.7 0.7 0.8
1.1
1.6 2.3 2.5 2.8
7.4
12.5 13.6 13.8 14.3
0
10
20
2010 2014 2015 2016 2017
Less than 6 tons
China 4 trillion yuan Economic stimulus effect
■ Business Environment
■ FY2016 Key Efforts
•Carry out structural reforms
•Increase non-excavator ratio
20
2015年
トヨタ
プリス向けに
展開開始
(600千本/年)
Inventory adjustments end due to kickback for the last minute rush of demand before stricter emissions regulations. A slight recovery forecast going forward.
New housing construction starts on upswing, but a declining trend in public investment may cause slowdown
Following the uptrend from June 2016, the increasing trend in hours of operation for excavators is bottoming out
Favorable infrastructure investment make this the only strong market globally, growth is expected to continue
Firm market despite political risk, basis set for restoration in southern Europe, which had been sluggish
0
1
2
3
4
2010 2014 2015 2016 2017
Europe
0
1
2
3
2010 2014 2015 2016 2017
India
0
1
2
3
2010 2014 2015 2016 2017
North America
0
5
10
15
20
2010 2014 2015 2016 2017
China
0
1
2
3
4
2010 2014 2015 2016 2017
Japan
(Thousand units) ■ Breakdown by Region
HC Operations—
Hydraulic Excavators Market (6 tons and over)
0
2500
5000
2015Q1 Q2 Q3 Q4 2016Q1 Q2 Q3 Q4
Beginning of the period
Results / Updated forecast
21
■ Production Volumes at Mid-sized Cylinder China Production Base (Units/month)
Earnings recovery for excavator products caused by market recovery and structural reforms
Production line streamlining in accordance with revision of demand forecast ⇒ Complete
Cylinder production line reduction
Japan: 15,000 → 12,000 pieces per month; China: 12,000 → 6,000 pieces per month
Personnel organization / redistribution ⇒ Ongoing Personnel at China company: Reduction by 200 over 2 years
Signs of recovery Production was adjusted due to
excessive inventory
HC Operations—
Hydraulic Excavators Market
■ Structural Reforms
Semi-active: Domestic share over 80%
Fully active: Increase shares with sales promotions for electronic hydraulic system that senses vibration in railway cars and actively moves
22
■ Railroad Strategy
1. Maintenance Demand
0
20
40
60
80
2015 2016 2017 2018 2019 2020
Inspection Disassembly/inspection/maintenance
Maintenance business forecast (Thousand units)
Market Environment Actions
China Major national high-speed rail grid lines (4+4) → (8+8) High-speed rail grid to reach 30,000 km by 2020 (For reference: Japan’s rails reach approx. 2,600 km)
Capacity increase for Maintenance demand (1) Cost reduction by localization
Overseas infrastructure
India: Mumbai – Ahmadabad High Speed Rail planned North America: Texas High Speed Rail, others
Proposals for existing / new railroad products exported from Japan
Needs Ride feel improvement and safety / disaster response New product sales promotion – Electronic
hydraulic semi/fully active suspension (2)
2. Active Suspension
Respond to maintenance demand
HC Operations—
Increase Non-Construction Business (Railroad)
23
FY2016 Key Initiatives
Earning trust and orders from customers around the world by uniting the KYB Group’s functions
Make progress towards the next medium term
Monozukuri Technology and product development
Ensure cost-competitiveness by
increasing productivity and improving quality.
Develop new products and technologies that outpace the
competition, leading to winning orders in each region.
Share information globally and conduct unification
activities, leading to winning orders.
Ensure the development of global human assets in order to achieve above.
Production, sales, technology unification activities
Develop human resources
Management activities for Group optimization
Management
25
Takaaki Kato Member of the Board of Directors, Senior Managing Executive Officer KYB Corporation
First-Half of FY2016
Financial Information
26
(¥ Billion) FY2015 FY2016
Differences 1H actual 1H actual
Net Sales
Shock absorbers for automobiles 82.9 76.6 (6.3)
Shock absorbers for motorcycles 12.8 12.8 0.1
Hydraulic equipment for automobiles 23.8 23.2 (0.6)
Others 3.2 2.6 (0.6)
AC Operations 122.6 115.2 (7.4)
Hydraulic equipment for industrial use 40.9 41.1 0.2
Others 4.2 4.0 (0.1)
HC Operations 45.1 45.2 0.1
Special-purpose Vehicles 4.4 3.8 (0.5)
Hydraulic equipment for aircraft 3.1 3.9 0.8
System products and electronic components, etc. 4.8 4.9 0.1 Special-purpose Vehicles, Aircraft Components,
System Products and Electronics Components 12.2 12.6 0.4
Total 179.9 172.9 (6.9)
Segment Profits
AC Operations 7.2 6.2 (1.0)
HC Operations 0.4 1.6 1.1 Special-purpose Vehicles, Aircraft Components,
System Products and Electronics Components 0.4 0.1 (0.3)
Total 8.1 7.9 (0.2)
1H of FY2016 Net Sales and Segment Profits
27
8.1
(2.6)
7.9
0.5 (0.2)
0.9 1.3
Segment profits (0.2)
FY2015 1H actual
(IFRS)
Increase / decrease in
sales, Variable cost reduction
Depreciation expenses
Personnel expenses
Other expenses
Others FY2016
1H actual (IFRS)
AC 7.2 (2.5) 0.3 0.7 0.6 (0.1) 6.2
HC 0.4 (0.0) 0.6 0.7 (0.0) (0.1) 1.6
SV&S 0.4 (0.1) (0.0) (0.2) (0.1) 0.0 0.1
Total 8.1 (2.6) 0.9 1.3 0.5 (0.2) 7.9
Note: The effect of the exchange rate on segment profits throughout the entire Company is –¥2.2 billion, and is not reflected in the above breakdown.
1H of FY2016 Changes in Segment Profits
■ Causes (¥ Billion)
AC: Automotive Components HC: Hydraulic Components SV&S: Special-purpose vehicles, aircraft components, and system product and electronic components
28
Overseas Sales Ratio
55.3% 53.7%
179.9 172.9
FY2015 FY2016 Differences
1H actual 1H actual Previous period
Japan 80.4 80.0 (0.5)%
Europe 29.5 26.9 (8.7)%
America 22.7 20.2 (11.1)%
China 11.2 10.6 (4.6)%
Southeast Asia 12.6 11.7 (7.4)%
Other 23.5 23.5 (0.1)%
Total 179.9 172.9 △3.8%
1H of FY2016 Net Sales by Region
■ Net Sales by Region (¥ Billion)
FY2015 1H actual
FY2016 1H actual
Europe
America
China
Southeast Asia
Other
Japan
29
Financial Forecast for FY2016
(¥) FY2015 actual
2H of FY2016 estimate
JPY / US$ 120.15 100.00 JPY / EUR 132.57 110.00 JPY / CNY 18.85 15.00 JPY / THB 3.44 2.80 JPY / RUB 1.91 1.50
■ FOREX (Average) *Segment profits correspond to operating income in JGAAP
(¥ Billion)
IFRS Differences
FY2015 FY2016
Actual Forecast
(Aug. 5, 2016) Forecast
Previous period
Previous forecast
Net Sales 355.3 346.0 348.0 (7.3) 2.0
Segment profits* 17.6 13.8 15.8 (1.8) 2.0
Operating profit 4.3 13.8 15.4 11.1 1.6
Profit (loss) attributable to owners of the parent
(3.2) 9.2 11.0 14.2 1.8
Dividend (¥) 11 11 11 ±0 ±0
HC Operations: Bottoming out of construction machinery market in China
■ Cause for Results Revision
30
FY2015 Actual
FY2016 Forecast
Differences
Net Sales
Shock absorbers for automobiles 162.6 149.5 (13.1)
Shock absorbers for motorcycles 26.3 26.2 (0.2)
Hydraulic equipment for automobiles 46.3 46.4 0.1
Others 5.7 5.6 (0.2)
AC Operations 240.9 227.6 (13.3)
Hydraulic equipment for industrial use 79.8 84.5 4.7
Others 8.2 7.8 (0.4)
HC Operations 88.0 92.3 4.3
Special-purpose Vehicles 9.1 8.4 (0.7)
Hydraulic equipment for aircraft 7.0 7.8 0.8
System products and electronic components, etc. 10.3 12.0 1.7 Special-purpose Vehicles, Aircraft Components,
System Products and Electronics Components 26.4 28.1 1.7
Total 355.3 348.0 (7.3)
Segment Profits
AC Operations 15.5 10.8 (4.7)
HC Operations 0.5 3.9 3.5 Special-purpose Vehicles, Aircraft Components,
System Products and Electronics Components 1.6 1.1 (0.5)
Total 17.6 15.8 (1.8)
FY2016 Net Sales and Segment Profits Forecast
17.6
(0.3) (4.9)
15.8
0.5
1.0 1.9
31
FY2015 Actual (IFRS)
Increase / decrease in
sales, Variable cost reduction
Depreciation expenses
Personnel expenses
Other expenses
Others FY2016
Forecast (IFRS)
AC 15.5 (7.3) 0.2 1.8 0.9 (0.3) 10.8
HC 0.5 2.4 0.9 0.4 (0.2) (0.1) 3.9
SV&S 1.6 (0.0) (0.1) (0.3) (0.2) 0.1 1.1
Total 17.6 (4.9) 1.0 1.9 0.5 (0.3) 15.8
AC: Automotive Components HC: Hydraulic Components SV&S: Special-purpose vehicles, aircraft components, and system product and electronic components
■ Causes (¥ Billion) Segment profits (1.8)
FY2016 Changes in Segment Profits
Note: The effect of the exchange rate on segment profits throughout the entire Company is –¥4.7 billion, and is not reflected in the above breakdown.
Provision for Product Warranties
32
0
10
20
30
40
50
60
70
80
0
1,000
2,000
3,000
4,000
2010 2011 2012 2013 2014 2015 2016
(予想)
Outstanding balance of provision for product warranties (Right scale) Net Sales (left scale)(¥ billion)
(FY)
8
300
200
100
(Forecast)
7
6
5
4
3
2
1
Quality issues are stabilizing, and outstanding balance of provision for product warranties is on a declining trend
400
0
20
25
30
35
40
45
50
150
250
350
2009 2010 2011 2012 2013 2014 2015(IFRS)
2016(IFRS)
Number of consolidated subsidiaries
Capital expenditure
Depreciation and amortization
33
(年度)
(¥ billion)
35
25
15
(FY)
5
(Number of companies) Peak investment Peak number of subsidiaries
D&A > Cap Ex
Round of capital expenditures accompanying global expansion Investment will be held within depreciation and amortization range
without exception from FY2016 onward
Capital Expenditures / Depreciation and amortization
3.5 3.5 4 4 4 4 5 5 5
3.5
2.5
4 5
4 5
5 6 6
2 2.2%
1.0%
0.8%
2.2%
2.1%
1.7% 1.8%
2.2% 2.1%
1.9%
0
2
4
6
8
10
12
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Interim Year end Dividend on equity ratio (DOE)
34
Dividends
■ Changes to Dividends Distributed
(FY)
commemorative dividend
(Forecast)
34
For further information, please contact to: Investor Relations Sect., Finance Dept. Tel: +81-3-3435-3580
Cautionary Statement
This report contains forward-looking statements, including KYB’s plans and strategies, as well as statements that report historical results. Forward-looking statements involve such known and unknown risks and uncertainties as economic conditions; currency exchange rates; laws, regulations, and government policies; and political instability in principal markets.
35
36
Appendix Financial Data
(¥ billion)
FY'13 1st Half FY'13 2nd Half FY'14 1st Half FY'14 2nd Half FY'15 1st Half FY'15 2nd Half FY'16 1st Half FY'16 Total
Capital Expenditure 12.11 17.80 13.68 16.11 8.92 12.38 8.84 14.40 (*1)
Depreciation Exp. 7.92 9.37 7.66 8.83 8.60 8.47 7.75 17.30
"Capital expenditure"and "Depreciation exp."= invested and depreciated in property, plant and equipment (Est.)
(*1)The estimation of "Capital Expenditure in FY2016 Total" is on order basis. Actual figures were calculated on inspection basis.
(¥ billion)
FY'13 1st Half FY'13 2nd Half FY'14 1st Half FY'14 2nd Half FY'15 1st Half FY'15 2nd Half FY'16 1st Half
Interest-bearing Debt 95.40 88.81 84.92 92.45 90.40 91.69 91.13
(¥ billion)
FY'13 1st Half FY'13 2nd Half FY'14 1st Half FY'14 2nd Half FY'15 1st Half FY'15 2nd Half FY'16 1st Half
R&D Expenses 3.13 3.79 4.29 4.62 3.74
FY'13 1st Half FY'13 2nd Half FY'14 1st Half FY'14 2nd Half FY'15 1st Half FY'15 2nd Half FY'16 1st Half
Number of Employees 12,901 13,033 13,478 13,732 13,771 13,796 14,192
FY'13 1st Half FY'13 2nd Half FY'14 1st Half FY'14 2nd Half FY'15 1st Half FY'15 2nd Half FY'16 1st Half FY'16 2nd Half
Average FOREX Rate - JPY/USD 98.85 101.62 103.04 116.83 121.80 118.50 105.29 100.00
Average FOREX Rate - JPY/EUR 130.01 138.74 138.91 138.64 135.06 130.09 118.15 110.00
Average FOREX Rate - JPY/CNY 16.10 16.71 16.63 18.85 19.43 18.27 15.94 15.00
Average FOREX Rate - JPY/THB 3.23 3.16 3.20 3.58 3.56 3.32 3.00 2.80
Average FOREX Rate - JPY/RUB 3.07 3.01 2.90 2.17 2.12 1.70 1.61 1.50
(Est.)
7.76
Capital Expenditure, Depreciation
Interest-bearing Debt
R&D Expenses
Number of Employees
Foreign Exchange Rate
37
Appendix Net Sales by Region
(¥ billion)
AC HC Others Total AC HC Others Total
Japan 36.2 33.4 10.8 80.4 36.2 32.5 11.4 80.0
36.0 31.3 12.6 80.0 - - - -
72.2 57.7 30.5 160.4 36.2 32.5 11.4 80.0
Europe 27.1 2.4 0.0 29.5 24.1 2.8 0.0 26.9
25.8 2.3 0.0 28.0 - - - -
52.8 4.7 0.0 57.5 24.1 2.8 0.0 26.9
America 19.9 2.9 0.0 22.7 17.4 2.8 0.0 20.2
17.5 3.1 0.0 20.7 - - - -
37.4 6.0 0.0 43.4 17.4 2.8 0.0 20.2
China 7.5 3.7 0.0 11.2 7.2 3.5 0.0 10.6
8.0 2.1 0.0 10.1 - - - -
15.4 5.8 0.0 21.2 7.2 3.5 0.0 10.6
South East 12.2 0.3 0.0 12.6 10.9 0.7 0.0 11.7
Asia 11.8 0.3 0.0 12.1 - - - -
24.1 0.6 0.0 24.7 10.9 0.7 0.0 11.7
Others 19.8 2.5 1.3 23.5 19.3 3.0 1.2 23.5
18.9 4.0 1.7 24.6 - - - -
38.7 6.5 3.0 48.1 19.3 3.0 1.2 23.5
Total 122.6 45.1 12.2 179.9 115.2 45.2 12.6 172.9
118.0 43.1 14.3 175.5 - - - -
240.6 88.0 26.4 355.3 115.2 45.2 12.6 172.9Total
1st Half
2nd Half
Total
1st Half
2nd Half
Total
1st Half
2nd Half
Total
1st Half
2nd Half
Total
FY2015 FY2016
1st Half
2nd Half
Total
1st Half
2nd Half
Total
1st Half
2nd Half
38
Customer Award Reason for Award
JATCO Regional Quality Award
Sustained zero delivery complaints
Mitsubishi Fuso Truck and Bus
Daimler Asia Partner Award for cooperation to CR activity
Yamaha Motor Global Contribution Award
Award for high evaluation in establishing India plant
Kobelco Construction Machinery
New Model Contribution Award
Quality Award
Appendix Awards from Customers
■ Awards from Customers (Mostly 1H of FY2016, partial excerpt)
39
Reportable segment Business breakdown Major products
AC Operations
Shock absorber for automobiles
Shock absorber (OE) Shock absorber (Aftermarket)
SA for automobiles
Shock absorber for motorcycles
Motorcycles Front folk Rear cushion units
Hydraulic equipment for automobiles
Vane pump CVT pumps EPS
Vane pump, power steering systems CVT pumps EPS
Others Stay dampers Stay dampers
HC Operations
Hydraulic equipment for industrial use
Construction machinery Industrial machinery Agricultural machinery
Cylinders, valves, pumps, motors, Gear pumps MMP, HST
Others Railroad equipment Seals
Railroad dampers, brakes Seals
Other
Special-purpose vehicles
Special-purpose vehicles Concrete mixer trucks
Hydraulic equipment for aircraft
Aircraft equipment Actuator, valves, wheels brakes
System products and electronic components, etc.
Vibration control devices Stage equipment Electronic components
Earthquake dampers Stage control systems ECU, mobile communication device
Red letters correspond to each business division on page 12.
Appendix Breakdown of Business Divisions